Bihar Parents Worry As Rupee Slide Vs Dollar Raises Foreign Education Costs

By Ranjit Kumar

Patna: The decline in the Indian Rupee against the US Dollar (USD) is beginning to affect students studying abroad. Increased fees and rising interest rates on education loans have made it difficult for parents to bear the expenses. A large number of children from Bihar are also studying in various countries, and this has increased the financial burden on their families.

Medical Studies At Rs 20 Lakh

Senior Patna High Court advocate Shah Nawaz Ali has been worried lately. Both his daughters are studying abroad, but the expenses have begun to bite into his pocket now. He says when he sent his daughters, Shafaq Nawaz and Sharmeen Nawaz, to Kyrgyzstan to study medicine in 2022, the cost of the 5-year course was around Rs 20 lakh per student, bringing the total cost for both daughters to Rs 40 lakh. This included hostel fees and food expenses. But the costs have increased significantly in just the last few months.

Ali explains that over the past few months, while the USD has been rising, the INR has been falling in value. Currently, 1 USD is worth approximately Rs 90. He says that in addition to tuition fees, he used to send Rs 10,000 per month to each daughter for food and other necessities.

But now, this has increased to Rs 15,000. For both daughters, he now has to send Rs 30,000. On top of this, the college management is now demanding additional fees. Due to the increase in the value of the USD, the cost of living and food has increased one and a half times.

"I enrolled both my daughters in a medical course in Kyrgyzstan in 2022. At the time, the USD was worth Rs 84. Today, it's approximately Rs 90. This has increased the expenses. I have to send extra money for both daughters, and there seems to be no relief in sight. The financial burden on middle-class families is increasing," said Ali.

Burden Of Education Loans

For families who have taken education loans to send their children abroad, the problem has worsened. Paying loan installments while bearing domestic expenses is proving difficult. College fees have already become more expensive for students studying abroad. On top, the cost of food, rent and travel, as well as visa fees and other processing charges, have also increased.

A large number of Indian students study abroad. According to data from the Indian Bureau of Immigration, a total of 7.6 lakh students went to other countries to study in 2024. This figure was around 8.9 lakh in 2023. In 2022, this was 7.5 lakh; in 2021, 4.5 lakh; while in 2020, it was 2.6 lakh, showing a sharply rising graph.

In the case of Bihar, every year, between 3,000-5,000 students go abroad for higher studies. According to one estimate, in 2016, 2,352 students from Bihar went abroad for studies. It rose to 3,345 in 2017; 4,399 in 2018; and 4,888 in 2019, showing an upward trend. However, the number of students going abroad for studies from Bihar fell in 2020 due to the Covid-19 pandemic.

Why Do Students Go Abroad?

In India, demand for technical education in Medical and Engineering remains evergreen. In some countries, this is cheaper than India, because of which, many Indians, including from Bihar, send their children to these countries. For example, the largest number of students from Bihar, around 800-1,000 a year, go to Russia to pursue degrees in Medicine and Engineering.

Around 600-800 students from Bihar also go to Uzbekistan or Kazakhstan. Similarly, around 500-700 Bihari students go to Canada, primarily for management, IT, and diploma degrees. The numbers of students going to England and the USA from Bihar ranges between 400-500, while the corresponding numbers for Australia is 300-400.

Rising Dollar Value Raises Remittances

While the rising value of the USD is causing distress to students and their parents, families with members working in the Gulf countries have seen an increase in their income. Mohammad Ikram, a resident of Gopalganj, says the increase in the dollar's value has raised his family's income from remittances from two family members who live in Gulf countries. A large number of young people from Siwan and Gopalganj work abroad, especially in the Gulf. Several residents of Muzaffarpur, Patna, and Bhojpur districts also work abroad.

According to one estimate, in FY 2024-25, Indians living abroad sent approximately USD 135.46 billion to India (around Rs 11.6 lakh crore). On average, the annual figure is around USD 130 billion. For Bihar, this figure is roughly Rs 65,000-80,000 crore.

The highest remittances in Bihar come to Siwan district, around Rs 20,000-30,000 crore, followed by Gopalganj, between Rs 15,000-26,000 crore. For other districts, this figure is between Rs 24,000-30,000 crore.

What Do Experts Say?

Economist Vidyarthi Vikas says imports are increasing in the country while India's exports have decreased, leading to a rise in the value of the USD. He says there is currently no possibility of relief, as the US is reportedly considering imposing more trade sanctions. In this situation, India will have to increase its exports to see the value of the dollar fall.

"The burden on students studying abroad is constantly increasing. Their expenses have probably increased by 1.5 times in the past few months. While the income of some families may have increased from remittances, the economy as a whole is in a worrying phase. The Indian government will have to focus on increasing exports," said Vikas.

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4. 'If You Drop Out, Skip Classes..': Embassy Cautions Students Pursuing Higher Studies In US